Rate cuts improve investor confidence

The global economic slowdown continues to dampen investor confidence. Global equity markets have spiralled downwards, albeit unevenly, with the slowdown concentrated in economies linked to the US and global technology, media and telecoms companies. Large-cap stocks have underperformed small caps and tech-orientated growth sectors have been hit by deteriorating earnings growth and business momentum. Defensive sectors such as resources, utilities and household goods have proved more stable. The latest round of US and UK interest rate cuts has improved investor confidence and further monet...